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Self-directed IRAs give you something rare—control. They let you put your money to work in creative ways that go beyond Wall Street. But with great power comes great responsibility, especially when it’s time to take a distribution or fulfill a required minimum distribution (RMD).
What’s a “Dawg,” Anyway?
In portfolio-speak, a “dawg” is a dud—an underperforming or failing investment. And we all have them. Maybe it was a promising startup that fizzled, or a property that turned out to be more hassle than hedge.
But here’s the key: smart retirement investors know when to let go.
Two Strategies for IRA Withdrawals:
📈 Sell Portions of Your Winners
You don’t have to cash out completely. Selling a portion of a high-performing, liquid investment can fulfill your RMD and still leave your gains growing. Think of it as rewarding yourself for making a great call.
🐕 Sell Your Dawgs!
We often hold onto losing investments because we don’t want to admit defeat—this is called loss aversion bias. But bad investments still demand your attention and deplete your energy. Liquidating these positions to fund a distribution is not just practical—it’s freeing.
👉 Takeaway: Whether you trim the winners or cut the losers, do it with clarity. Use your skill and your advisor’s insight to make the most of each decision.
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